Investor Presentaiton
4Q22 profit from insurance business lower QoQ mainly
due to unrealised valuation losses on insurance
contract liabilities from inverted SGS yield curve
Profit from Insurance Business
SGS Yield Curve
(SGD❜m)
4.00
Great Eastern
Insurance
Operating Profit
3Q22 4Q22
S$208m S$224m
Up 30% YoY and 8% QoQ driven
by resilient underlying insurance
business operating performance
84
3.50
3.00
2.50
208
224
3Q22
2.00
1.50
(250)
1.00
4Q22
Insurance: Operating profit 1/
Insurance: Non-operating profit/(loss) 2/
0.50
Source: Bloomberg
0.00
1-YR
3-YR
5-YR
7-YR
9-YR
10-YR
15-YR
20-YR
30-YR
→ OCBC Bank 1/Operating profit
Non-Operating
Insurance
Sep 22
Profit/(Loss)
Feb 23 3/
Dec 22
Dec 21
1/ Operating profit is defined as premiums less claims, maturities, surrenders, commissions, expenses and changes in reserves, plus
investment income (dividends, coupons, etc).
2/ Non-operating profit/loss mainly comprises changes in the fair value of assets and liabilities, realised gains/losses on sale of investments
and changes in liability discount rates due to interest rates fluctuation.
3/ Rates as at 14 Feb 2023.
3Q22
S$84m (S$250m)
4Q22
■■4Q22 non-operating loss of
S$250m due to steeper inversion
of SGS yield curve in Dec 22
compared to Sep 22
This impacted valuation of
longer-end insurance contract
liabilities in the Singapore Non-
Participating business
The unrealised valuation losses
on insurance contract liabilities is
expected to reverse as the SGS
yield curve normalises to become
upward sloping
Longer-end rates have been
comparatively higher after 31
Dec 22
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